Correlation Between Applied Blockchain and Exor NV
Can any of the company-specific risk be diversified away by investing in both Applied Blockchain and Exor NV at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Applied Blockchain and Exor NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Blockchain and Exor NV, you can compare the effects of market volatilities on Applied Blockchain and Exor NV and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Applied Blockchain with a short position of Exor NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Blockchain and Exor NV.
Diversification Opportunities for Applied Blockchain and Exor NV
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Applied and Exor is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Applied Blockchain and Exor NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exor NV and Applied Blockchain is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Applied Blockchain are associated (or correlated) with Exor NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exor NV has no effect on the direction of Applied Blockchain i.e., Applied Blockchain and Exor NV go up and down completely randomly.
Pair Corralation between Applied Blockchain and Exor NV
Given the investment horizon of 90 days Applied Blockchain is expected to generate 4.22 times more return on investment than Exor NV. However, Applied Blockchain is 4.22 times more volatile than Exor NV. It trades about 0.19 of its potential returns per unit of risk. Exor NV is currently generating about -0.12 per unit of risk. If you would invest 827.00 in Applied Blockchain on August 28, 2024 and sell it today you would earn a total of 223.00 from holding Applied Blockchain or generate 26.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied Blockchain vs. Exor NV
Performance |
| Timeline |
| Applied Blockchain |
| Exor NV |
Applied Blockchain and Exor NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Blockchain and Exor NV
The main advantage of trading using opposite Applied Blockchain and Exor NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Blockchain position performs unexpectedly, Exor NV can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Exor NV will offset losses from the drop in Exor NV's long position.| Applied Blockchain vs. Magic Empire Global | Applied Blockchain vs. Zhong Yang Financial | Applied Blockchain vs. Netcapital | Applied Blockchain vs. Lazard |
| Exor NV vs. Zapp Electric Vehicles | Exor NV vs. Guangzhou Automobile Group | Exor NV vs. NFI Group | Exor NV vs. Honda Motor Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
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